Nido Petroleum sets start of Phase 2 drilling

MANILA, Philippines - Nido Petroleum Limited, an energy company listed at the Australian Stock Exchange, said that operations at the Galoc oil field in offshore Palawan are progressing well.

“Nido Petroleum is pleased to advise that Phase 2 operations are progressing well and that subsea installation activities to connect the Galoc 5-H and Galoc 6-H wells into the FPSO Rubicon Intrepid are nearing completion,” Nido said.

The consortium expects that production from the second phase of the wells will commence early next week.

The Galoc 5h well in northwest Palawan has successfully yielded oil, confirming the potential of the well, Otto Energy also said.

Furthermore, Otto also said that results from the flow test are in line with the forecast overall field production rate of 12,000 barrels of oil per day to be delivered once Phase II is brought in to production.

The forward plan now is to move to Galoc-6H, install the subsea tree, and commence clean-up and flow testing.

The Galoc joint venture partners last year approved the Galoc Phase 2 development and commenced drilling in June 2013. The consortium expects first oil in the fourth quarter of 2014.

Total investment cost for the Galoc Phase 2 project is $188 million of which Otto’s share is $62 million representing its 33 percent interest.

The Phase 2I development, which has the support of the joint venture, will require the drilling of two subsea wells, tied back to the existing floating production, storage and offloading facility.